Media coverage anticipating the forthcoming pay ratio disclosures continues to percolate in advance of the first disclosures which will appear in proxy statements within the next month. This week, several news sites, including the Washington Post, Bloomberg, and CNBC all published articles all discussed the pay ratio and contemplated whether its introduction as a disclosed measure would reduce CEO compensation packages. The Bloomberg article, "Why Companies Fear Disclosing CEO-to-Workers Pay" provided an interesting, almost neutral view, which reviewed 10 points about the pay ratio, including a well summarized view of how it is calculated and the concerns with comparing from company to company. The Washington Post article, "Will Salary Shaming Rein In CEO Pay? We’ll Find Out", written by one of the two authors who authored the Bloomberg piece, cites equity compensation, compliant directors and the non-binding nature of say on pay results as primary reasons for exploding CEO pay. As is characteristic about most pieces which discuss the pay ratio, apart from the flashy headline, the article does not offer much substance regarding how the pay ratio could impact pay, other than to say that board might be embarrassed. Finally, the CNBC article "CEOs Make $15.6 Million on Average—Here’s How Much Their Pay has Increased Compared to Yours Over the Year" reviews a report by the Economics Policy Institute which was published in July of 2017 - presumably just because it is again relevant because of the impending pay ratio disclosure.
None of the articles themselves provide much in terms of new perspectives. However, combined with articles which appeared earlier this year in smaller papers across the country, they demonstrate there is a growing trend to stir discussion about the pay ratio and keep it in the news. The first disclosures will appear in late February.